CHANGES FOR 2022-23

Tax Changes for 2022/23 

Every tax year, changes come in.

With all these changes increase your costs of living for many families, However, we need to know to plan and face it.

Reduction in the Capital Gains Tax annual exempt amount

Individuals pay Capital Gains Tax (CGT) on the profits they make from selling or disposing of assets such as jewellery, and things like art and painting.

In 2022/23, each individual has an “annual exempt amount” of £12,300. This means a client can make a gain of up to £12,300 before any CGT would typically be due. Couples can combine their exemption and make gains of up to £24,600 in the 2022/23 tax year.

In the autumn statement, The chancellor announced the annual exempt amount would fall to £6,000 in April 2023 and then to £3,000 in April 2024.

The result of this is that more of a client’s profits will be subject to CGT in future tax years. The 

current tax rates are:

• Basic rate: 10% (18% for      residential property)
• Higher rate: 20% (28% for      residential property)

Clients should think carefully about crystallising some gains before the end of the 2022/23 tax year in order to make the most of the current annual exempt amount of £12,300.

Let’s discuss about it when you need further support.